MY GYM(SZ:002621)2020-04-28 16:00Financial Performance - The company reported a total revenue of RMB 590 million for the year 2019, representing a year-on-year increase of 15%[11]. - The company's operating revenue for 2019 reached ¥629,819,433.65, representing a 137.35% increase compared to ¥265,356,399.69 in 2018[17]. - Net profit attributable to shareholders was ¥119,706,651.80, a significant increase of 279.40% from ¥31,551,543.65 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was ¥114,048,550.72, up 649.16% from ¥15,223,546.57 in 2018[17]. - The total revenue for 2019 reached approximately CNY 629.82 million, representing a 137.35% increase compared to CNY 265.36 million in 2018[51]. - The early education services segment generated CNY 410.18 million, a significant growth of 769.93% from CNY 47.15 million in the previous year[51]. - The company reported a significant increase in sales expenses, which rose by 204.41% to ¥45,122,535.91, attributed to the acquisition of Tianjin Meijiem Education Technology Co., Ltd.[61]. - The company reported a significant increase in non-operating income for 2019, amounting to ¥5,658,101.08, a decrease from ¥16,327,997.08 in 2018, reflecting a decline of approximately 65.3%[24]. User Engagement and Market Expansion - The number of active users reached 150,000, showing a growth of 20% compared to the previous year[11]. - The company plans to expand its market presence by opening 30 new centers in 2020, aiming for a 25% increase in user enrollment[11]. - Future outlook indicates a targeted revenue growth of 20% for 2020, driven by increased enrollment and new product offerings[11]. - The number of signed early education centers in mainland China reached 524 by the end of the reporting period, an increase of over 20% from 434 centers at the end of 2018[43]. - The company launched a sub-brand "Little Jim" to target lower-tier markets, enhancing its presence in third and fourth-tier cities while maintaining the quality and service standards of the main brand "Jim"[43]. - The company is focused on expanding its market share and brand influence through enhanced management capabilities and talent development[42]. - The company aims to capitalize on the growing demand for early education services driven by urbanization and increasing disposable income among families[41]. Strategic Initiatives and Investments - The company is investing in new technology development, focusing on enhancing its early education curriculum and digital learning tools[11]. - The company has identified potential acquisition targets to enhance its service offerings and market reach[11]. - The company is focused on integrating educational training assets and plans to gradually transfer or merge related companies into the listed entity[100]. - The company plans to expand internationally, with new centers established in Thailand and Vietnam, and aims to enter larger markets like India and Russia over the next 3-5 years[87]. - The company is launching an online platform to complement its offline services, with plans to introduce paid courses post-pandemic, enhancing market reach and operational efficiency[86]. - The company plans to continue investing in and acquiring international education groups with synergistic effects to enhance profitability[89]. Risk Management and Compliance - The management highlighted risks related to market competition and regulatory changes, with strategies in place to mitigate these risks[6]. - The company is facing risks from increased operational costs due to regulatory upgrades in the early education industry[89]. - The company is also exposed to intensified market competition as more institutions enter the early education sector[90]. - The company has committed to avoiding competition and regulating related transactions to maintain its independence, with ongoing compliance since November 2016[99]. - The company has a long-term commitment to avoid any form of competition with its subsidiaries[100]. Shareholder and Governance Matters - The board approved a profit distribution plan, with no cash dividends and a capital reserve transfer of 4 shares for every 10 shares held[6]. - The company did not distribute any cash dividends for 2019, despite having positive distributable profits, to ensure sufficient cash flow for normal operations and strategic goals[97]. - The company has established a fair pricing mechanism for related party transactions to ensure compliance with market standards[106]. - The company has committed to disclose any failure to fulfill commitments publicly and take corrective actions within one month[106]. - The company maintains a complete separation from its controlling shareholder in terms of business, personnel, assets, and finances, ensuring independent operational capabilities[198]. Employee and Management Structure - The total number of employees in the company is 687, with 28 in the parent company and 659 in major subsidiaries[187]. - The total compensation for directors and senior management during the reporting period amounts to 1,262.17 million yuan[186]. - The company has a total of 6 independent directors, each receiving 6 million yuan[186]. - The company has implemented a long-term incentive plan primarily based on restricted stock to retain key talent, alongside a performance evaluation system for salary adjustments[189]. - Various training programs have been conducted to enhance the professional skills and overall quality of core talent, aligning with the company's rapid development needs[190]. Community Engagement and Social Responsibility - The company donated 709 pieces of clothing to impoverished children in Sichuan's Daliangshan region[147]. - The company provided over RMB 400,000 in donations for educational support and infrastructure in Guizhou province[147]. - The company opened 95 online early education courses for free to support families during the COVID-19 pandemic[147]. - The company donated RMB 2 million to Wuhan Charity Federation for COVID-19 relief efforts[147].